Financial Performance - Revenue for the six months ended June 30, 2023, was HK$430,705,000, a decrease of 4.5% compared to HK$451,085,000 in the same period of 2022[13]. - Gross profit for the same period was HK$247,278,000, down from HK$267,475,000, reflecting a decline of 7.5%[13]. - Profit before taxation improved to HK$42,123,000, compared to a loss of HK$70,492,000 in the prior year[13]. - Profit for the period from continuing operations was HK$21,378,000, a significant recovery from a loss of HK$67,470,000 in the previous year[13]. - Total comprehensive income for the period was HK$959, compared to a comprehensive loss of HK$58,250,000 in the same period last year[13]. - For the six months ended June 30, 2023, the profit attributable to owners of the Company from continuing operations was HK$39,138,000, compared to a loss of HK$51,154,000 in the same period of 2022, representing a significant turnaround[15]. - The total comprehensive income attributable to owners of the Company for the period was HK$19,383,000, compared to a loss of HK$49,010,000 in the prior year, indicating improved financial performance[15]. - Basic earnings per share from continuing operations increased to HK$0.70, up from a loss of HK$0.92 per share in the previous year[15]. - For the six months ended June 30, 2023, the company reported a profit of HK$39,138,000, compared to a loss of HK$31,178,000 for the same period in 2022, marking a significant turnaround[21]. - The total profit (loss) attributable to owners of the Company for the six months ended 30 June 2023 was HK$39,138,000, while for the same period in 2022 it was a loss of HK$31,178,000[91]. - The net profit for the same period was approximately HK$21.4 million, a turnaround from a net loss of approximately HK$67.5 million in 2022, resulting in a basic earnings per share of approximately HK$0.007[193]. - The Group's net profit for the six months ended 30 June 2023 was approximately HK$21.4 million, a turnaround of approximately HK$88.9 million compared to a net loss of approximately HK$67.5 million in 2022[195]. Revenue Breakdown - Pharmaceutical business revenue was HK$332,721,000, down 10.2% from HK$370,379,000 in the previous year[49]. - Fitness business revenue increased to HK$97,984,000, up 21.4% from HK$80,706,000 in the prior year[49]. - Revenue from personal training classes in the fitness segment was HK$33,000,000, an increase of 12.0% from HK$29,258,000[49]. - Membership package revenue in the fitness segment rose to HK$44,486,000, up 36.3% from HK$32,624,000[49]. - Revenue from royalty fees related to fitness and health activities was HK$20,498,000, an increase of 9.0% from HK$18,824,000[49]. - Revenue from Mainland China was HK$325,828,000, a decrease of 10.8% from HK$365,167,000 in the previous year[49]. - The decline in revenue and gross profit was primarily due to adverse impacts from medical insurance policy adjustments in Mainland China and a weak macroeconomic environment affecting customer demand[190][193]. - The fitness business segment in Singapore showed significant improvement as it gradually recovered from the COVID-19 pandemic, partially offsetting the negative impacts from the pharmaceutical segment[190]. Expenses and Costs - Distribution and selling expenses decreased to HK$216,049,000, down 7.8% from HK$234,213,000[13]. - Administrative expenses were reduced to HK$55,229,000, a decrease of 11.4% from HK$62,386,000[13]. - The company reported a cost of inventories recognized as expenses of HK$81,170,000 for the period, down from HK$86,469,000 in the previous year, reflecting a decrease of approximately 6.1%[79]. - The total amortization and depreciation expenses for the period were HK$57,780,000, down from HK$65,037,000 in 2022, which is a decrease of approximately 11.1%[79]. - Cost control measures adopted by the Group were effective in offsetting some of the revenue declines[198]. Assets and Liabilities - Non-current assets decreased to HK$1,143,419,000 as of June 30, 2023, down from HK$1,430,941,000 at the end of 2022, reflecting a reduction in property, plant, and equipment[17]. - Current assets slightly decreased to HK$683,954,000 from HK$689,502,000, with cash and cash equivalents increasing to HK$150,606,000 from HK$122,595,000[19]. - Total liabilities decreased to HK$378,525,000 from HK$504,707,000, primarily due to a reduction in bank borrowings due within one year[19]. - The equity attributable to owners of the Company increased to HK$1,120,490,000 as of June 30, 2023, compared to HK$1,101,107,000 at the end of 2022, indicating a strengthening balance sheet[19]. - The Company reported a net current assets position of HK$305,429,000, up from HK$184,795,000, highlighting improved liquidity[19]. - Total consolidated assets decreased to HK$1,827,373,000 as of June 30, 2023, from HK$2,120,443,000 as of December 31, 2022, reflecting a decline of approximately 13.8%[58]. - The total consolidated liabilities decreased to HK$686,832,000 as of June 30, 2023, from HK$964,162,000 as of December 31, 2022, representing a decline of approximately 28.9%[58]. - The Group's bank borrowings decreased to HK$49,880,000 as of June 30, 2023, down from HK$206,555,000 on December 31, 2022, representing a reduction of approximately 76.1%[131]. Gains and Losses - The significant increase in profit to approximately HK$108.5 million in 2023 was mainly due to a one-off gain of approximately HK$110.5 million from the sale of a 66% stake in Shaanxi Zhi Guang Chen Ji Pharmaceutical Co., Ltd.[200]. - The Group recorded a one-off gain on the disposal of subsidiaries of approximately HK$110.5 million, contributing to the overall profit[198]. - The gain on disposal of subsidiaries for the six months ended June 30, 2023, was HK$110,491,000, compared to HK$2,998,000 in the same period of 2022, reflecting a significant increase[67]. - The company reported a net loss on the disposal and write-off of property, plant, and equipment of HK$366,000 for the six months ended June 30, 2023, compared to a loss of HK$1,589,000 in the same period of 2022, indicating an improvement of about 77%[67]. Strategic Focus and Future Outlook - The Company has not disclosed any new product developments or market expansion strategies during this reporting period[20]. - Future outlook and performance guidance were not explicitly detailed in the provided documents[20]. - The Group's management continues to focus on expanding its fitness and health consultation services alongside its pharmaceutical operations[188]. - The Group's strategic focus remains on enhancing operational efficiency and market presence in both the pharmaceutical and fitness sectors[188].
华控康泰(01312) - 2023 - 中期财报